Chainfeeds Summary:
Primitive Ventures partner YettaS analyzes the significance and breakthrough points of stablecoins from a macro perspective, using USDT as an example.
Source:
https://x.com/yettasing/status/1853642737549296065
Author:
YettaS
Viewpoint:
YettaS: Currently, Tether's assets are invested in US Treasuries for more than 80%, which makes Tether almost have the characteristics of a US government-type money market fund, with high asset safety and sufficient liquidity. At the same time, it is also better than money market funds, because money market funds do not have the function of currency settlement, they are just the products sold, and cannot become the circulation of currency itself. This is the charm of the currency business, Tether combines payment, settlement, and Treasury management to become the actual Federal Reserve in our industry, which was unimaginable before the crypto era. Its network effect expands as liquidity expands. That said, we can understand why Paypal wants to issue a stablecoin, because as its business expands, it has already realized fund accumulation and payment and settlement, and the stablecoin is the best carrier for all this. Where does the resistance to Tether come from? First, it cannot support the Federal Reserve's monetary policy. As a fully reserved stablecoin, Tether will not adjust liquidity with the Federal Reserve's monetary policy, and cannot participate in the Federal Reserve's quantitative easing or monetary tightening like commercial banks. Secondly, the Treasury Department needs to be vigilant about it causing turmoil in the US Treasury market. If Tether collapses due to an unexpected event, it will have to sell a large amount of US Treasuries, which will put tremendous pressure on the US Treasury market. Finally and most importantly, Tether is essentially squeezing the living space of banks and money market funds. The high liquidity and high returns of stablecoins have attracted more and more users, greatly challenging the deposit absorption capacity of banks and the attractiveness of money market funds. To transcend the US dollar system, Tether's future lies not only in maintaining its role in global payments and liquidity, but also in deeper consideration of how to build a truly supranational monetary system. I believe the key is in its linkage with BTC. In 2023, Tether will allocate 15% of its profits to configure BTC, which is not only an attempt to diversify its asset reserves, but also effectively makes BTC an important component supporting its stablecoin ecosystem. In the future, as Tether's payment network expands and BTC deepens as a supranational currency in the global market, we may witness a brand new financial order.
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